Galois Capital, one of the world’s largest crypto-focused quantitative funds, has announced its closure after suffering a significant loss of capital in the collapse of FTX. Co-founder Kevin Zhou wrote in a note that “given the severity of the FTX situation, we do not think it is tenable to continue operating the fund both financially and culturally”. The fund had been managing over $100 million in assets and had been investing in a range of digital assets, including Bitcoin, Ethereum, and other altcoins. The closure of Galois Capital is a reminder of the risks associated with investing in the cryptocurrency markets and highlights the need for investors to be aware of the potential pitfalls.
Galois Capital, a cryptocurrency investment firm, had $40 million stuck at FTX in November 2020. The firm’s founder, Zhou Shuoji, informed investors that it would take a few years to recover some percentage of the funds. Zhou has promised to work tirelessly to maximize the chances of recovering the stuck capital by any means. He has also urged investors to remain patient and trust that the firm will do its best to recover the funds. Galois Capital is currently exploring all options to recover the funds, including legal action, and is hopeful that the situation will be resolved soon.
Galois, a crypto-asset trading platform, has sold its bankruptcy claims for 16 cents on the dollar, according to the Financial Times. This is lower than the 13 cents on the dollar that FTX claims were going for on the bankruptcy marketplace Xclaim in January. Zhou, a crypto-asset investor, commented on the situation, noting that the entire saga has set the crypto space back significantly, but he remains hopeful for its long-term future. This news highlights the risks associated with investing in crypto-assets, and the importance of doing due diligence before investing.
